Congresswoman Carolyn B. Maloney (NY-12), Vice Chair of the U.S. Congress Joint Economic Committee, issued the following statement to accompany publication of Retirement Insecurity, a report written at her request by the Democratic staff of the committee. The release of the report coincides with the 84th anniversary of the Social Security Act.

“Since President Franklin D. Roosevelt signed the legislation into law on this day in 1935, Social Security has prevented millions of Americans from falling into poverty and has become a pillar of retirement security in our country.”

“Despite Social Security’s success, the other two major components of our nation’s retirement system – private savings and pensions – are failing hardworking Americans. As a result, roughly half of Americans are at risk of losing their current standard of living in retirement.”

“Americans find it increasingly hard to save for retirement amid stagnant wages and the rising cost of housing, health care and college. Meanwhile the share of workers who receive pensions has almost fallen in half since the late 1980s. And only about half of middle-income workers and less than 10 percent of the poorest Americans have defined-contribution accounts like 401(k)s.”

“These problems are particularly acute for women, minorities and people with low earnings or less education. Women, African Americans and Hispanics on average have less saved for retirement and less retirement income. Women, in particular African American and Hispanic women, are at greater risk of outliving their retirement savings.”

“As a result, it is particularly important to protect and strengthen Social Security, while recognizing that the rest of our retirement system is in crisis.”

Press contact:
Randy Woods
Randy_Woods@jec.senate.gov
(202) 224-2599

WASHINGTON— Congresswoman Carolyn B. Maloney (NY-12), Vice Chair of the U.S. Congress Joint Economic Committee, issued the following statement after the Bureau of Economic Analysis (BEA) released its initial estimate of second-quarter gross domestic product (GDP). The report showed that GDP grew at an annual rate of 2.1 percent in the second three months of 2019 following a 3.1 percent increase in the previous quarter.

 “Today’s GDP report was somewhat underwhelming, considering this administration passed $1.9 trillion in tax cuts on the promise they would lead to a sustainable increase in growth. Private investment, which was supposed to benefit from the tax law, dropped considerably. While one quarterly GDP reading doesn’t constitute a trend, it’s worth remembering that the Congressional Budget Office, Federal Reserve and International Monetary Fund all forecast growth will start slowing this year.”

“It is becoming clear that the 2017 GOP tax law was a boon to the fortunate few that will worsen income inequality and make it harder for the federal government to stimulate growth in the next recession. Meanwhile, the Trump Administration continues to impose policies that undermine our economy such as massive tariffs while engaging in reckless behavior that creates uncertainty among businesses.”

 “Today’s report shows consumer spending accelerated while private investment contracted. Manufacturing has shown signs of slowing in recent months as Trump’s tariffs raise the cost of imports and a global economic slowdown reduces demand for American exports. In light of the growing risks to our economy, we should focus on rebuilding our crumbling infrastructure, better educating our children and improving health care services.”

“We also need to improve our understanding of who benefits and loses out in our economy. We don’t know how growth is distributed across incomes, though trends would suggest those at the top are reaping most of the advantages.”

“That is why I urge BEA to move quickly to prepare distributional analyses of income growth. This information will provide policymakers a fuller understanding of whom the economy is working for, enabling us to create programs that increase opportunity and reduce inequality.”

Congresswoman Maloney introduced the Measuring Real Income Growth Act (H.R. 707) this Congress and also in the 115^th Congress. The bill would require BEA to analyze GDP by each decile of income earners and the top 1 percent. It would also require the agency to report this data in quarterly and annual reports, beginning in 2020.

Press contact
Randy Woods
Randy_Woods@jec.senate.gov
(202) 224-2599

WASHINGTON—Congresswoman Carolyn B. Maloney (NY-12), Vice Chair of the U.S. Congress Joint Economic Committee (JEC), issued the following statement about the JEC Democratic response to the 2019 Economic Report of the President. The JEC is required by law to submit findings and recommendations in response to the Report, which is prepared and released each year by the White House’s Council of Economic Advisers. This year’s Report came out in March.

“I am pleased to share our response to the 2019 Economic Report of the President. We worked hard to set the record straight after President Trump’s Report misconstrued facts, cherry-picked data, promoted theories rejected by most economists and claimed credit for conditions he inherited. Our work draws on solid data and careful research, whereas the White House Report prioritizes politics over serious economic assessment.”

“Not only does the Report promote overly optimistic economic forecasts and exaggerate the impact of GOP tax cuts, but it almost entirely ignores the economic effects of climate change and makes light of poverty levels. It also gives only cursory consideration to Millennials, who make up the largest generation in the workforce, and overlooks the risks inherent in the White House’s weakening of financial regulations and consumer protections. And it takes a premature victory lap on prescription drug prices, where the administration has failed to propose a comprehensive solution.”

“While the Democratic response to the Report is by no means exhaustive, it offers a serious and revealing look at issues that we must better understand in order to strengthen our economy and promote income equality.”

The Democratic response to the Economic Report of the President runs 151 pages. It features an introductory statement by Vice Chair Maloney and is divided into the following chapters:

1)      Macroeconomic Overview
2)      Economic Inequality
3)      Millennials
4)      Consumer Financial Protection
5)      Prescription Drug Prices
6)      Climate Crisis

For a copy of the full report, which is compiled with the JEC Republican staff report (Democratic report comes second), click here. For a copy of just the Democratic response, click here.

WASHINGTON—Congresswoman Carolyn B. Maloney (NY-12), Vice Chair of the U.S. Congress Joint Economic Committee, issued the following statement after the Bureau of Labor Statistics reported nonfarm payroll employment grew by 224,000 in June and the unemployment rate ticked up to 3.7 percent. Average hourly earnings increased 3.1 percent from the prior year.

“I am happy to see that American businesses continue to generate jobs at a solid rate a decade after the Great Recession ended. The economy has proven resilient to self-inflicted wounds imposed by the Trump administration including erratic trade policies that punish American consumers and some of our closest allies.”

“Despite these gains, a closer look at today’s jobs report reveals persistent inequalities that prevent too many people from achieving the American Dream. Black and Hispanic unemployment rates are still higher than those for whites and Asians, while 4.3 million people who wanted full-time work had to work only part-time last month. The share of women working or seeking work hasn’t fully recovered from the last recession, as day care costs and insufficient paid family leave policies make it hard for mothers to keep their jobs.”

“That is why I have been pushing so hard for Congress to pass a law that would allow federal workers to care for a child or sick family member without facing financial hardship. The U.S. government should be a model employer and pave the way for workers throughout the country to win the right to paid family leave. I also urge Congress to approve legislation that would require the Bureau of Economic Analysis to report economic growth by income decile and the top 1 percent. This would help us measure inequality and implement programs and policies to ensure all Americans benefit from our nation’s economic progress.”

Congresswoman Maloney, author of the Federal Employee Paid Leave Act (H.R. 1534), introduced the bill as an amendment to the National Defense Authorization Act (NDAA) in June along with Congresswoman Chrissy Houlahan (D-PA) and House Armed Services Committee Chairman Adam Smith (D-WA). The legislation would provide 12 weeks of paid leave to federal employees to care for themselves and family members. Congresswoman Maloney also introduced the Measuring Real Income Growth Act (H.R. 707) this Congress and in the 115th Congress. The legislation would require the Bureau of Economic Analysis to publish distributional analyses of gross domestic product.

Press contact: Randy Woods; Randy_Woods@jec.senate.gov; (202) 224-2599